Madison, Wisconsin Short-Term Rental Market
Madison, WI STRs averaged $169/night at 62.8% occupancy in April 2026, with 5.3% year-over-year revenue growth.
Quick Answer: Madison, Wisconsin is an active short-term rental market. average occupancy is 63%. average monthly revenue is $2,754. average daily rate is $169. the top operator is Voyageur Stays with 38 listings. market score is 62/100 (grade C).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Madison, Wisconsin, the state capital and home to the University of Wisconsin-Madison, drew a record 9.65 million visitors in 2025. The city’s short-term rental market tracked 913 active listings in April 2026. Entire-place rentals account for 739 units (81.0% of supply), with private rooms at 173 and one shared-room listing. Bedroom distribution skews toward smaller units: 1-bedroom listings lead at 412 (roughly 45% of inventory), followed by 2-bedroom (217), 3-bedroom (166), 4-bedroom (77), and 5-bedroom (40).
In April 2026, the all-listing average daily rate was $169, up 2.3% from April 2025. Occupancy reached 62.8%, up 0.1% year over year, and average monthly revenue was $2,754, up 5.3% year over year. RevPAR was $106.11.
Channel distribution shows Airbnb dominance: 601 Airbnb-exclusive listings, 241 on both Airbnb and VRBO, and 71 VRBO-exclusive. The market composite score is 62.1 out of 100. Rental demand scored 95.0, reflecting Madison’s year-round draw from government activity, university events, and conventions. Revenue growth scored 42.7, consistent with a market where revenue has softened modestly in recent years. Investability scored 63.5, regulation 71.8, and seasonality 69.0.
On an annual basis, 2025 average monthly revenue was $3,027, down 2.6% from $3,107 in 2024. Annual ADR rose from $169 in 2024 to $174 in 2025, indicating that rate growth has not fully offset a modest occupancy decline.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 49% | $117 | $1,688 |
| Feb | 59% | $121 | $1,774 |
| Mar | 61% | $124 | $2,075 |
| Apr | 62% | $131 | $2,151 |
| May | 64% | $154 | $2,536 |
| Jun | 69% | $170 | $3,070 |
| Jul | 74% | $182 | $3,607 |
| Aug | 72% | $179 | $3,510 |
| Sep | 66% | $163 | $2,851 |
| Oct | 65% | $158 | $2,855 |
| Nov | 57% | $150 | $2,398 |
| Dec | 54% | $136 | $2,160 |
Top Short-Term Rental Operators in Madison
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Voyageur Stays | 38 | 1,272 | ★ 4.96 |
| 2 | Remotely | 34 | 207 | ★ 4.84 |
| 3 | Leavetown | 24 | 230 | ★ 4.55 |
| 4 | Patriot Properties | 16 | 710 | ★ 4.78 |
| 5 | Evolve | 9 | 189 | ★ 4.87 |
What Kind of STR Should I Buy in Madison?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 412 |
| 2 bed | 217 |
| 3 bed | 166 |
| 4 bed | 77 |
| 5 bed | 40 |
ADR by Property Tier
| Entire Home | $192 |
| Luxury | $416 |
| Professionally Managed | $149 |
Revenue by Dwelling Type
| Apartment | $1,980 |
| Entire Place | $3,059 |
| House | $3,300 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 65.8% |
| vrbo | 7.8% |
| both | 26.4% |
Investment Analysis
Madison’s STR market presents a mixed investment picture. Rental demand is exceptionally strong (score: 95.0 out of 100), supported by a permanent base of government workers, university students and guests, convention traffic, and leisure visitors. However, the city’s strict primary-residence licensing requirement effectively bars non-owner-occupied investment purchases from year-round STR operation, and the revenue growth score of 42.7 reflects that annual revenues have trended slightly downward since peaking at $3,160/month in 2023.
For primary-residence owner-operators who qualify, gross annual revenue at the 2025 average of $3,027/month was approximately $36,324/year before platform fees, taxes, and permit costs. Property pricing data is not available in the housing snapshot for this area, so a gross yield calculation cannot be derived from available data.
Rate tier comparisons reveal the premium for quality. Entire-home listings averaged $192/night in April 2026, a 14% premium over the all-listing average of $169. Luxury-tier listings averaged $416/night, approximately 2.5x the market average. Professionally managed listings averaged $149/night, approximately 12% below the all-listing average, which is an atypical pattern; it likely reflects the Madison PM-managed segment’s composition skewing toward budget-tier or corporate extended-stay inventory.
At the revenue level, houses averaged $3,300/month in April 2026, the highest of any listing type. Entire-place rentals averaged $3,059/month (8% below houses) and apartments averaged $1,980/month. The house-to-apartment revenue gap of $1,320/month is substantial in a market where the overall average is $2,754.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Guests book Madison short-term rentals an average of 46 days in advance. This approximately 6-week lead window reflects both the urban leisure market (shorter planning horizon) and the event-driven demand for UW sports, graduation weekends, and festivals (longer planning horizon for high-demand dates). The average length of stay is approximately 5 to 6 nights, consistent with extended leisure stays and conference visits.
For operators, the 46-day lead time means that peak-summer and high-demand event weekends are effectively priced and booked by late May for July dates and early June for August dates. Operators who manage rates dynamically around known event calendars, particularly UW home football games (September through November) and graduation (typically May), can capture meaningful rate premiums on those specific weekends.
The roughly 6-night average stay reduces weekly turnover frequency, lowering cleaning costs per occupied period while requiring effective mid-stay service management.
Short-Term Rental Regulations
Short-term rentals in Madison, Wisconsin are legal but require three separate government approvals before advertising or renting. Operators must obtain a Transient Room Tax Permit from the City Finance/Treasury office, a Dane County Hotel/Motel/Tourist Rooming House License from Public Health Madison and Dane County, and a Zoning Tourist Rooming House Permit (ZTRHP) from Building Inspection. The ZTRHP can only be issued after the other two are in hand. The ZTRHP costs a $300 application fee for the first year, with a $100 annual renewal. The permit year runs July 1 through June 30.
The property must be the operator’s primary residence and must have been so for the 12 consecutive months before operating. The city’s approach to night limits depends on the host’s presence: if the operator occupies the home during the guest stay, there is no annual night cap. If the operator is away and the home operates unhosted, it may do so for a maximum of 30 nights per licensing year. Occupancy is capped at the lesser of twice the legal bedroom count or 12 guests.
A 10% city room tax applies to all STR stays. Airbnb collects and remits this tax on behalf of hosts; VRBO users and direct-booking hosts must remit it themselves, along with filing quarterly reports. Wisconsin state and county sales tax (5.5%) also applies to lodging revenue.
Enforcement is strict. The permit number must appear in all advertisements. Violations carry fines of $500 to $1,000 per day, doubled following a revocation. This framework effectively limits investor-owned, non-primary-residence STRs from year-round operation.
Market Comparison
Madison’s April 2026 occupancy of 62.8% exceeds the national STR median of approximately 55%, even in a shoulder month. Peak-summer occupancy above 73% places the market well above typical benchmarks. The all-listing ADR of $169 is below the national median of approximately $220, consistent with Madison’s Midwestern pricing environment. Luxury-tier ADR of $416 aligns with premium urban markets nationally.
The rental demand score of 95.0 is among the highest readings across the STR data platform, reflecting Madison’s dense visitor base from state government, the university, and year-round tourism. The revenue growth score of 42.7 is lower, consistent with the market’s recent modest annual revenue softening.
The top five property management companies account for a combined 121 listings, approximately 13.3% of the 913-listing market. Voyageur Stays leads with 38 listings and a 4.96 average guest rating across 1,272 reviews, the highest-rated operator in the top 5. Remotely manages 34 listings (4.84 rating). Leavetown manages 24 listings (4.55 rating, 230 reviews). Patriot Properties manages 16 listings with a 4.78 rating across 710 reviews. Evolve manages 9 listings with a 4.87 rating. The overall market is moderately fragmented, with the top 5 controlling roughly 13% of supply.
Frequently Asked Questions About Madison, Wisconsin
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What permits are required to operate a short-term rental in Madison, Wisconsin?
Is there a nightly cap on Madison short-term rentals?
What taxes apply to Madison, WI short-term rentals?
When is peak season for Madison, WI short-term rentals?
Who are the leading STR property managers in Madison, WI?
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